Concept of Supply is extremely wide and significant under GST in India. Supply in simple words includes all activities in the nature of sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. Some important inclusion or exclusion may be as under:
Further, GST taxable machinery differentiate between supply of Goods and supply of Services, therefore it is important to clearly identify a transaction either supply of Goods and supply of Services. Practically, it may not be possible to classify some transaction in such a manner so some deeming provisions is being incorporated in GST Law under Schedule-II of the GST Act which classify some specified transactions to be treated as supply of Goods or supply of Services e.g. restaurant, construction job work with or without material shall be considered as supply of services.
Therefore, Supply as defined under GST in India includes so many business transactions which seems to be not taxable supply but when we go in the depth of such transactions, these transactions are proved to be taxable transactions and attract GST even made without consideration and even you are not in business.
We need to focus every related party transactions which are quite vulnerable under this category e.g. an individual is the owner of a business complex or a residential house and using these places for his multiple businesses and may not be charging any consideration for the same. in fact such transactions are taxable supply even when we are using our residential house for our businesses.
Another such example may be the transactions between Head office and overseas branches or vice versa say Branch office in India may be providing some services to its clients in India and it may be getting some help to implement such transactions, obviously not paying any consideration for the same; this seems to be not taxable supply but it may be covered under importation of services from Head office and taxable under GST.